PE owners explore EverBank exit three years after acquisition
A consortium of five private equity firms is exploring a sale of EverBank, just three years after acquiring the Florida-based digital bank from TIAA, according to a report by the Wall Street Journal citing unnamed people familiar with the matter.
A group of five private equity firms is considering selling digital bank EverBank, just three years after acquiring the Florida-based lender from TIAA, according to a Wall Street Journal report citing unnamed sources. The bank, which primarily operates digitally but maintains several dozen branches mainly in Florida and California, had about $47 billion in assets at the end of June, making it the 57th-largest US bank holding company.
Deposits totaled around $38 billion. The owners initially aimed to expand through further acquisitions, a common buy-and-build strategy in private equity. However, disagreements over the bank's direction among the five sponsors and on EverBank's board have emerged. The potential sale adds complexity to the process, with investment banks and advisers now involved.
EverBank has focused on rapid balance-sheet growth, investing in its mobile banking platform and expanding high-yield savings accounts to attract customers. While these strategies can increase deposits, they often provide thinner margins. The bank has also increased lending to non-bank financial institutions such as private credit firms, real estate investors, and insurance companies.
Despite these efforts, the owners remain confident in the bank's long-term growth prospects and have evaluated various options, including acquisitions, a sale, merger, or an initial public offering, as they seek an exit after three years.
Written by urgent.news from Private Equity Wire's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
